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Measuring Economic Impacts of B2B e-Business Basic Modelling Considerations. Overview. What is e-Business. Theoretical assumptions on impacts. Our approach of measurement. Results. How to modify the initial model?. What is B2B e-Business? 1.

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Measuring Economic Impacts of B2B


Basic Modelling Considerations


What is e-Business

Theoretical assumptions on impacts

Our approach of measurement


How to modify the initial model?

What is B2B e-Business? 1

E-Business is the machine-readable (and processible) exchange of

information which is linked to business processes.

Typical business processes of every enterprise are: Purchasing, production/

range of products planning and logistics, sales and development.

Machine-readable informations are informations which contain descriptive

data on content in addition to the processible content of data, informing

about the content and the necessary processing steps.

  • Typical content of descriptive data implies information on

  • Product

  • Supplier/ customer

  • Transaction

  • Further processing

  • These informations have to be standardised

What is B2B e-Business? 2

E-Business therefore is the standardised exchange of information related to

business processes which needs standards on several levels:

Product/ supplier/ customer standard

Catalogue format standard

Transmission standard and

Integration standard

The aim is not only the automation of processes but the integration

of information into all relevant process chains

within the enterprise and

with all partners in the value chain

in order to increase transparency and throughput speed and to save

transaction, capital and handling cost.

What is the b2b application potential 1
What is the B2B application potential? 1

  • Critical points for the application potential of B2B are the

  • Complexity/ richness and the reach of information

  • Possibility of decomposition of value chain processes

  • Coverage of strategic or tactical human action (complementary

  • information exchange) vs. automated information exchange

What is the b2b application potential 2
What is the B2B application potential? 2

Complementary information

exchange for strategic and tactical

human action

B2B information



with potentially

wide reach

Very rich


Types of Business Information

complementary communication

feasible &


as B2B






Batch edi interchange structure
Batch EDI interchange structure

Name Tag Status

Service String Advice UNA Conditional

Interchange Header UNB Mandatory

Group Header UNG Conditional

Message Header UNH Mandatory

Message Body

Message Trailer UNT Mandatory

Group Trailer UNE Conditional

Interchange Trailer UNZ Mandatory

Interactive edi interchange structure
Interactive EDI interchange structure

Name Tag Status

Service String Advice UNA Conditional

Interactive Interchange Header UIB Mandatory

Interactive Message Header UIH Mandatory

Message Body

Interactive Message Trailer UIT Mandatory

Interactive Interchange Trailer UIZ Mandatory

Example message segment table
Example message segment table


POS TAG Name S R Notes

0010 Uxx Message header M 1

0020 AAA Segment AAA name M 1

0030 BBB Segment BBB name C 9

0040 CCC Segment CCC name C 9

0050 ---------- Segment group 1 ------------------ C 999 -------+ 1

0060 DDD Segment DDD name M 1 |

0070 EEE Segment EEE name C 9 |

0080 FFF Segment FFF name C 9 |

0090 GGG Segment GGG name C 1 -------+

0100 ---------- Segment group 2 ------------------ C 9 -------+ 1

0110 HHH Segment HHH name M 1 |


0120 ---------- Segment group 3 ------------------ C 9 ------++

0130 III Segment III name M 1 | |

0140 JJJ Segment JJJ name C 9 | |

| |

0150 ---------- Segment group 4 ------------------ C 9 -----+ | |

0160 KKK Segment KKK name M 1 | | |

0170 LLL Segment LLL name C 9 -----+++



.nnnn Uxx Message trailer M 1


1. D3(0050, 0100) One or more


Impacts expected by theory 1

  • Reduction of transaction cost by

  • Person to machine and machine to machine transactions

  • Wider and faster availability of information

  • Use of new instruments e.g. auctions, demand aggregation

  • Collaboration effects by

  • Co-operative stock- and logistics management; reduction of Forrester effects

  • Reduction of throughput time

  • Knowledge management

  • Dis-intermediation and Re-intermediation due to

  • new compromises between richness and reach of information (e.g. elimination

  • of old intermediaries and the creation of new intermediaries)

  • Employment effects by

  • e.g. elimination of administrative functions, changed knowledge demand

  • Self organisation of co-operative networks because of

  • Shift of the horizontal and vertical limits of enterprises

  • Increasing fragmentation of the value chain

  • Increasing dispersion of critical knowledge

  • Impacts expected by theory 2
    Impacts expected by theory 2

    • Typical diffusion phases

    • (Strassman, Skinner, Millard...)

    • characterised by

    • Implementation of new technology

    • Internal diffusion of applications

    • Definition of standards & interfaces

    • New process organisation

    • Organisational adaptation

    • Diffusion of “General Purpose Technologies”

    • (Helpman/ Trajtenberg)

    • characterised by

    • Pervasiveness

    • continuous technol. advances

    • Necessity of complementary innovation

    • Impacts dependent on completion of complementary innovation

    • “downstream” productivity gains

    Our approach 1

    Problems /

    Framework conditions

    B2B e-Business Processes


    Infrastructure / complementary Innovation

    Our approach 1


    Our approach 2

    “enlarged application”

    “advanced application”


    “early application”







    Complementary Innovation











    Systems integration





    Our approach 2

    Our approach 3

    Enterprise Oriented Service Suppliers

    Tier 1


    “Core” Firms

    Product / Service Value Chain

    Equipment & indirect



    Enterprise Related Services /

    Equipment Value Chain

    Our approach 3

    Tier N


    Business Customers

    Wirkungen 2
    Wirkungen 2


    Wirkungen 4
    Wirkungen 4

    Zum Vergleich:

    Handelskooperationen 34%

    Wirkungen 5
    Wirkungen 5

    Automobilindustrie 65%

    Zum Vergleich:

    Handelskooperationen 25%

    How to modify the initial model
    How to modify the initial model?

    Important, not included framework conditions

    Existence of enterprises with formative power

    Fragmentation of the value chain

    Concentration of management, product- and process knowledge

    Possibility to standardise processes

    Problems /

    Framework conditions

    B2B e-Business Processes


    Infrastructure / complementary Innovation

    Our modified approach


    Complementary information exchange